Ripple’s Dilip Rao: XRP Not for Retail, Institutional Use Key

In a recent discussion on X, the intended market for XRP has once again become a topic of debate. This time, the conversation was sparked by remarks made by Dilip Rao, the former Global Head of Infrastructure Innovation at Ripple. Crypto influencer John Squire shared a tweet highlighting Rao’s stance on XRP, stating that the digital asset is not meant for retail investors and that each XRP will be akin to gold.

Rao’s comments came from an interview where he addressed the role of retail investors in the XRP market. He acknowledged that many individuals engage in speculative trading but clarified that this is not Ripple’s primary focus. Rao explained that XRP is traded on approximately 150-200 exchanges worldwide, but much of this trading is “shallow” and does not align with Ripple’s strategic goals. He emphasized that Ripple is pursuing the use of XRP as a financial asset by sophisticated institutions as a bridging mechanism. Rao noted that the bulk of XRP sales in the last quarter were to institutional investors, indicating a shift away from retail to institutional use.

Rao’s perspective suggests that Ripple envisions XRP primarily as a tool for institutional transactions rather than for retail speculation. His assertion that a shift toward institutional adoption represents a key turning point implies that the company’s strategic focus lies in large-scale financial applications rather than serving individual traders. This view contrasts with the decentralized and open-source nature of the XRP Ledger, which some argue makes XRP accessible to everyone, including retail investors.

Despite Squire’s interpretation of Rao’s comments, some members of the XRP community have challenged the claim that XRP is “not meant for retail.” A prominent response came from X user Moon Lambo, who argued that Rao’s words were being misrepresented. Moon Lambo countered Squire’s assertion, stating that Ripple is not pursuing a retail use case because their clients are businesses. He also noted that if retail investors could no longer access XRP, it would dramatically and negatively impact the price. Moon Lambo referenced David Schwartz, one of the original architects of XRP, who has stated that XRP was designed to be a more efficient version of Bitcoin, reinforcing the idea that XRP is accessible to everyone due to its decentralized nature.

The debate over XRP’s role in the financial ecosystem remains contentious. While Ripple has historically focused on institutional adoption, the token itself continues to be widely traded and held by retail investors. Whether XRP is “meant” for retail may ultimately be a matter of perspective, depending on whether the focus is placed on Ripple’s business strategy or the decentralized nature of the XRP Ledger. As the digital asset industry evolves, the distinction between institutional and retail usage may continue to blur. Regardless of Ripple’s position, XRP remains accessible to anyone who wishes to trade, hold, or use it. Whether its long-term value will be shaped more by institutional or retail adoption remains an open question.